FAFSA & Non-Reportable Income - help!!!

[BelknapPoint]

I am aware I can go back and correct it on the current FAFSA, but I also don’t want to make things worse by making it look like I’m trying to hide something… was I wrong not to include that income on the first FAFSA?

Without knowing specifically what kind of income this is and where it came from, there is no way to answer your question.

…now the school is asking for verification for that income for the 2018/2019 years (or rather for 2016 - unclear why that year).

Because 2016 income was used to complete the 2018-2019 FAFSA.